The Westgate acquisition in November 2018 boosted half-year earnings.
CapitaLand Mall Trust’s (CMT) net property income (NPI) edged up 10.9% YoY to $273.25m in H1 2019 from $246.44m in 2018, an announcement revealed. Its revenue also jumped 10.3% YoY to $382.26m from $346.53m.
Distributable income grew 7.5% YoY to $214m in H1 2019 from $198.99m, whilst distribution per unit (DPU) inched up 3.8% YoY to $0.058 from $0.059.
In Q2, NPI was up 10.2% YoY from $120.79m in 2018 to $133.15m in 2019, whilst revenue also rose 10.6% YoY to $189.54m from $171.36m. Distributable income for the quarter rose 7.7% YoY to $107.72m, whilst DPU advanced 3.9% YoY to $0.0292.
The strong performance in H1 was attributed to the acquisition of the remaining 70% stake in Infinity Mall Trust (IMT), which holds Westgate, in November 2018. Upon the completion of the acquisition, IMT became a subsidiary of CMT and its results were incorporated with the group, with Westgate contributing $37.5m to the firm’s gross revenue. Funan, which reopened in June 2019, accounted for $900,000 of total revenue.
However, this was partially offset by lower gross revenue from Sembawang Shopping Centre (SSC), which the firm divested in June 2018. “Excluding Westgate, Funan and SSC, the gross revenue for H1 2019 was higher than H1 2018, mainly due to higher gross rental income, as well as higher other income from Tampines Mall, Bedok Mall, Plaza Singapura, and Clarke Quay,” the firm said.
Tony Tan, CEO of CapitaLand Mall Trust Management (CMTML), also noted that contributions from Westgate and Funan are expected to anchor CMT’s financial performance whilst the firm embarks on the rejuvenation of Lot One Shoppers’ Mall in Q3 2019. “Proposed works include expanding the footprint of the public library to enhance the mall’s community focus and formatting the cinema to house smaller screens that better serve moviegoers’ demands for variety,” he explained.
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